India Working on Expanding Share of Gas in Fuel Basket: Oil Minister

India’s oil minister on Monday said the government is taking various steps to increase the share of natural gas in share of India’s fuel basket.

Referring to BP Statistical Review of World Energy, minister Dharmendra Pradhan told the Indian parliament that the present natural gas share in the country’s fuel mix is 6.5 percent vis-a-vis the world average of 23.8 percent.

Pradhan informed that to meet the demand of natural gas in the country multiple steps have been taken. Some of the policy decision taken include approval of a new Hydrocarbon and Exploration Licensing Policy (HELP) and same has been notified on 30th March 2016. Policy for auctioning of 67 discovered small fields of ONGC and Oil India through international competitive bidding for early monetization has been approved.

The government has allowed marketing and pricing freedom for new gas production from deepwater, ultra deep-water and high pressure-high temperature areas subject to certain conditions, he said. 

Policy for grant of extension to the Production Sharing Contracts of 28 small and medium sized discovered blocks has also been approved along with policy framework for relaxation, extensions and clarifications at the development and production stage under PSC regime for early monetization of hydrocarbon discoveries. 

India has approved New Domestic Natural Gas Price Guidelines, 2014. Under these guidelines, gas price has been linked to the market and important hub prices. 

In an interview given to news agency Reuters in May, Pradhan said India will cut third off its emissions rate by 2030, partly by boosting the use of cleaner burning fuels. He said rise in domestic gas production and imports of cheap LNG will help the country move towards becoming a gas based economy.